Personal Lines License 20-44

Flashcard maker : Lily Taylor
Warranty
policy condition, either based on information in the insured’s application or inserted by the insurer
Misrepresentation
an untrue statement by the insured, made in an application but does not become a part of the policy
Broad Evidence Rule
a method of determing the true insurable worth of a structure or vehicle according to any measure that will prvoide the most accurate analysis of that property’s value
State
a jurisdiction other than the state of Florida (any state, district, territory, or commonwealth in the U.S.)
authorized insurer
one authorized by a subsisting certificate of authority issued by the department to transact insurance in this state
Office of Insurance Regulation
regulation, compliance, and enforcement of statutes related to the business of insurance and the monitoring of industry markets (regulatory oversight of company solvency, policy forms and rates, market conduct performance, and new company entrants in the FL market
Causes of Loss Form
specifies what perils are insured against and lists exclusions. Several different versions provide increasingly broad coverage from Basic to Broad to special. An earthquake form is also available
Split Limits
policy limits that apply one limit to each person injured, another for BI claims of all persons insured in a single accident, and a separate limit for all property damage arising out of a single accident (i.e. 15/30/10)
Severability
insurance applies separately to each insureds
Arbitration Clause
in the event the insured and the insurer cannot agree on amount of claim settlement, each appoints an appraiser
Liberalization
if insurer broadens coverage w/out additional premium w/in some period of time prior to the policy period (60 days) or during the policy period, the insured receives the benefit
Pro Rata
pay the proportion (limit: all limits) (i.e.$25,000/$100,000 =1/4)
Primary
applies 1st up to its limit
Excess
all other insurances exhausted before the policy will apply
Equal Shares
contribution based on the amount of policies regardless of their limits
Assignment
policy transfer from one insured to another
Subrogation
insured has the right to collect damages from another party but elects to claim the damages from her own insurance policy
Indemnity
a principle of insurance which provides that when a loss occurs, the insured should be restored to the approximate financial condition occupied before the loss occured, no better, no worse
Loss Payee
the person designated on an insurance policy as the one to be paid in case the property is damaged/destroyed
Damages
money amount w/ which liability insurance is concerned
Special Damages
reimbursement for out of pocket expenses
General Damages
reimbursement for damages that do not readily have quantitative measurement
Punitive Damages
due to negligence by defendent
Insurance
a contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies
Binder
an oral/written statement providing immediate insurance protection, valid for a specified period. Designed to provide temporary coverage until a policy can be issued or denied
Contracts of Adhesion
the parties are of unequal bargaining power, and the insured cannot negotiate the terms having to take the offer of the insurer as made
Controlled Business
when the majority of insurance written is for family members
Insurer
every person engaed as indemnitor, surety, or contractor in the business of entering into contracts of insurance or of annuity
Comparative Negligence Rule
reduces a plaintiff’s damages by the plaintiff’s degree of negligence
Contributory Negligence Rule
if one contributed to their own injuries in any way, they could not recovera dime from others
Declarations
the section of an insurance contract which shows who is insured, what property or risk is covered, when and where coverage is effective and how much coverage applies
Percentage Deductible
percentage of the property value of percentage or percentage of the policy limits
Limited Customer Representative
customer representative appointed by a general lines agent/agency to assit that agent/agency in transacting only the business of private passenger motor vehicle insurance
SR-22 Filing
a form which must be filed by the insurance company stating that auto liability insurance is in effect for aparticular individiaul. Required when insurance provided to an individual who was in an accident or was convicted of a traffic offense and was unable to show financial responsibility
Inland Marine Insurance
an extension of Ocean Marine coverage to insure transporation of goods over land. Also covers a variety of portable property
Inflation Guard
a property insurance option which provides that policy limits will increase a certain percentage at regular intervals (i.e. annually)
Domestic
insurance formed under the laws of this state
Sliding
charging an applicant for a specific ancillary coverage in addition to the cost of the auto insurance coverage aplied for without his consent
Foreign
insurance formed under laws of any state, district, territory, or commonwealth of the U.S. other than this state
Twisting
knowingly using an incomplete comparison of insurance policies in order to the get the insured to buy a policy from you
Representations
statement an applicant for insurance believes to be true
Temporary License
– not to exceed 6 months
– issued for the purpose of continuing or winding up the business affairs of the agent/agency in the event the licensed agent has died or is unable to perform his/her duties b/c of military service or illness, or other physical/mental disability
Domicile
the state/country/providence under the laws of which the insurer was formed
All Risk Insurance
“open perils” insurance – protecting the insured from loss arising from any peril other than those perils specifically excluded by name
Single Limits
policy limits that apply to all BI and property damage arising from a single accident
Transacting Insurance
– solicitation or inducement
– preliminary negotiations
– effecutuation of a contract of insurance
– transaction of matters subsequent to effectuation of a contract of insurance and arising out of it
Captive Insurance Company
a company that provides risk mitigation services for its parent company
Line of Authority
a kind, line, or class of insurance an agent is authorized to transact
Uniform Application
the uniform application of the National Association of Insurance Commissioners for nonresident agent licensing, effective Jan 15, 2001, or susequent versions adopted by rule by the department
Private Passenger Autos
ordinary cars, station wagons, jeeps, utility autos (pickups, panel trucks, and delivery vans 1,5000 lbs or less, not used commercially) and utility trailers designed to be pulled by a private passenger auto
Replacement Cost Endorsement
an endorsement that can be added to an HO3 form to provide replacement cost coverage on personal property (with limitations)
Endorsement
a document which is attached to the policy and modifies or changes the original policy in some way
Certificate of Authority
– act as an insurer
– transact insurance (directly or indirectly)
– solicit insurance applications
If does so w/out certificate, commits 3rd degree felony
Loss of Use Coverage
covers the insured’s increased cost of living after loss and rental value of any portion of the dwelling which is rented out
Named Nonowner Coverage
an endorsement that can be added to the Personal Auto Policy to provide coverage for a named individual who does not own an auto while the insured is operating autos owned by others
Brokering Agent
an originating general lines agent placing business w/ a company w/ which he/she is not appointed
Self-Insurance
insurance established by or on behalf of any individual, partnership, association, corporation, trustee, governmental unit, employer, or employee organization, or any other organized group (covering more than 10 employees)
Commercially Domiciled Insurer
– foreign or alien insurer authorized to do business in this state
– during 3 fiscal years – written avg 25%+ direct premiums in this state than in state of domicile
– direct premiums are 55%+ of its total premiums written in U.S. during 3 fiscal years
Indirect Loss
economic loss which is a result of direct loss
Bureaus of Life and Health and Insurer Solvency and Property and Casualty Insurer Solvency
monitors the solvency of life and health and property and casualty insurers authorized to operate in the state of FL
– ensure financial viability of insurers
Bureau of Market Conduct
monitors the conduct of insurers as it realtes to policyholder treatment
– protect the public from unethical insurance practices
Bureaus of LIfe and Health Forms and Rates and Property and Casualty Forms and Rates
reveiwing life and health and property and casualty policies that are to be issued to FL residents
– reviews and analyzes insurance reates for certain products
Direct Loss
physical harm to property due to peril, efforts to end peril, and exposure following peril
Personal Auto Policy (PAP)
provides broad coverage for both owned and non-owned autos, used maintained or operated by the insured and family
Personal Injury Protection (PIP)
coverage provided in auto policies in FL that covers the insured’s own injuries on a 1st part basis w/out regard to fault
**required & must be carried by all owners of motor vehicles in FL
Hazard
something that increases the probability that a loss will occur
Proximate Cause
an unbroken connection between an occurence and damage that grows out of the occurence
Risk
the chance of financial loss
Appointment
the authority given by an insurer or employer to a licensee to transact insurance or adjust claims on behalf of an insurer or employer
Home State
the District of Columbia and any state or territory of the U.S. in which an insurance agent maintains his/her principle place of residence or principal place of business and is licensed to act as an insurance agent
Actual Cash Value (ACV)
the cost to replace an item or property at the time of loss, minus depreciation
Replacement Cost
the cost to replace a damaged or destroyed item of property, w/out deducting depreciation
Valued Policy Law
if total loss by a covered peril to a building structure, mobile home, or manufactured housing unit, the insurer must pay the amouynt provided in the policy for whyich the premium has been paid
Coinsurance
lower rates for insureds who insure a high percentage of the value of the subject property
Coinsurance Clause
requires insured to pay part of loss if coverage is less than the specified percentage of the value of the property at the time of loss

Loss x (Limit of Insurance/Value of Property x Coinsurance %) = Loss Settlement

Specific Insurance
each property named and covered for a separate amount
Blanket Insurance
single amount of coverage applies to ANY loss of injury up to the single amount
Aggregate Limit
a type of policy limit which limits coverage to a specified total amount for all losses occuring w/in the policy period
Franchise Deductible
no payment is made until loss equals or exceeds proscribed amount, then the loss is paid in full
Alien
insurer other than a domestic or foreign insurer
WPMLU
Workers Comp, PIP, Med Pay, Liability, Uninsured Motorists
Unauthorized Insurer
one not authorized by the department to transact insurance in this state

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